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Female Leadership and Firm Performance

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  • Arlette Beltran

Abstract

This study explores whether companies´ experience benefits when the firm's CEO and owner are both women. It employs data from the 2009-2014 World Bank Enterprise Surveys (WBES) to measure firms' performance through growth in sales and productivity. Potential endogeneity was corrected by using the UN Gender Development Index and the average fertility rate as they comply with the exclusion restrictions. The paper uses the Control Function method with a Probit first stage estimation and an OLS main equation. The findings suggest that a female owner strengthens the female CEO's business skills and leads to better firm performance than when the CEO is a woman and the owner is a man.

Suggested Citation

  • Arlette Beltran, 2019. "Female Leadership and Firm Performance," Prague Economic Papers, Prague University of Economics and Business, vol. 2019(3), pages 363-377.
    • Handle: RePEc:prg:jnlpep:v:2019:y:2019:i:3:id:695:p:363-377
    DOI: 10.18267/j.pep.695
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    Cited by:

    1. María José Ibáñez & Felipe Vásquez Lavin & Roberto D. Ponce Oliva, 2023. "Female Underperformance Hypothesis Revisited: Methodological Review and Empirical Testing," SAGE Open, , vol. 13(4), pages 21582440231, December.
    2. García, C. José & Herrero, Begoña, 2021. "Female directors, capital structure, and financial distress," Journal of Business Research, Elsevier, vol. 136(C), pages 592-601.

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    More about this item

    Keywords

    firm performance; gender; statistical discrimination; cross-country data;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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